Planning to save for fixed annual expenses

POSTED BY avi ON March 2, 2011 11:50 pm COMMENTS (2)

I was planning to save for fixed annual expenses such as Term/Car insurance, ULIP & Annual vacation Where can i invest for the same? Preferably through SIP/monthly savings. Also state the tax implications of the same.If Somebody can suggest products as well it will be of great help.

2 replies on this article “Planning to save for fixed annual expenses”

  1. ashal jauhari says:

    Dear Avinash, Opt for Bank RDs as these are more easy to operate. Most of the banks now a days offer online RDs also if you do have net banking.

    The Interest earned from RDs is Taxable at your marginal rate of tax. but interestingly TDS is not applicable.

    Thanks

    Ashal

  2. Avinash

    So I assume you do not want to take any risk in this and this money should be available each year without fail . In which case you are not left with much options , as you have to go for fixed income products like RD or SIP in debt funds .

    Manish

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